Should I Cancel With Persels & Associates? I Could Just Cry. – Ruth

Husband and I have been in credit card debt for several years. We are in our mid 30s, have a 15 yr. mortgage, and 10k tax debt. I feel covered up. I don’t want to have a child because of all the debt. I want to see the light at the end of this dark tunnel.

We joined Persels & Associates a few years ago. They have helped us some, but we basically had to pay paid settlements on larger accounts by cashing in my IRA in which I was taxed for. Geez. We paid them because we received summons to go to court and didn’t want to go there.

We really couldn’t afford to pay them, but did. We have most paid off and my credit report is pretty cleared, however my husbands still has charged off accounts from 2010.. in which the creditors will not accept the settlements Persel’s has offered to them.

Should I cancel with Persel’s and use the $270 I pay them monthly towards the last few creditors vs. sticking with them?

I could just cry on your shoulder and I don’t know you :(

Thank you in advance!

Ruth”

The Answer

Dear Ruth

I wish you had come to me earlier. If you had I would have asked you to consider other options before risking your IRA, wasting value time in your life and potentially risking more income tax from forgiven debt. Not to mention the lost child.

I’m not sure if Persels & Associates ever made it clear to you that no creditor has to accept any settlement offer or that attempting to settle does not prevent possible legal action against you over failing to make payments to the creditors.

The reality is that if you qualify for a chapter 7 bankruptcy you could eliminate your debt in about 90 days, protect your IRA, eliminate tax debt older than three years and rebuild your credit quickly.

At this point you should consult with a local bankruptcy attorney to find out what bankruptcy would mean for you and if you are unhappy with the services you received, only you can make the determination to quit and go it alone.

At the very least bankruptcy would eliminate the remaining debt from creditors that will not work with your debt settlement company and stop all lawsuits and collections. Your husband might be able to file individually.

I really hate to see situations like this in general. For the most part people wind up wasting years having been sold a magical debt relief solution that has no proven track record of eliminating all debt for the majority of consumers that pursue mass market debt settlement.

If I was there I’d give you a big hug and we’d both get all teary.

Please post your responses and follow-up messages to me on this in the comments section below.

My heart sinks when I read stories like this, from ungrateful whiners like you. Don’t you know that you have been fully and fairly compensated for losing your retirement savings, incurring unnecessary taxes, and getting sued by your creditors? Your lawyers in Florida have assured the court that this is true, and a federal judge has agreed. You’ve been paid and everything, well not in money but promises to tell you things, well not important things like you needed when you threw your life savings in the sewer. You don’t feel treated fairly? Let me turn the kettle on so I can also make you a nice cup of STFU. Aw, feel better? There there.

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